St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-01-29
W&Es sssNes sgtsAIPS.

The t3t0n WEI Eseza.iate Cor the
C0ur e ursued by the NOrts. t..
ern Il ID milwaukee, & ST. paul.
CHICAGO. Jan. 2S.--The competition of
the Chicago 81 Northwestern and the Chi
cago, Milwaukee d st. Paul railroads for
the Kansas traffic via Omaha and the
Marysville cut-off of the Union Pacific,
thus severely cutting into the business of
the Southwestern Railway association lines
is almost certain to lead to a serious war in
rates on all Western freight business Be-
fore the construction of the Nj arysville cut
off by the Union Pacific, the Northwestern
and Milwaukee & ST. Paul roads were not
able to get INTO Southwestern territory ex-
cept in connection with the Southwestern
assoc alton lines. The Alton. which is the
only line in the Southwestern association
which has no line to Council Bluffs or
Omaha. could not get into the territory of
the Western Traffic association without
using one Of the lines belonging to the latter
association. An agreement is said to be in
existence between the Northwestern and the
Chicago u Alton by which they agree not
to get into each others territory. But
since the completion Of the Marysville cut
off both the Northwestern and Milwaukee
q St. Paul commenced to take business at
cut rateS to Kansas territory. At first the
lumber rates only were Cut by these roads
and they succeeded in getting the bulk of
this traffic. Since then these roads have
commenced to compete for all other KAN
sas traffic. and succeeded in taking consid-
cradle business from the Southwestern
roads. 1t was proposed that the Southwest
em Railway ASSOCIATION make ar upon the
Northwestern and Milwaukee & st. Paul
roads tn pOmnpt them "A Epn1n of
western, or rather Kansas territory, but a
dill the roads in the Southwestern associa-
ton except the Alton are also members of
the Western Traffic association
No UNANIMOUS ACTION
could be reached, as the Omaha lines in the
Southwestern association by making war
upon the Northwestern and Milwaukee &
st. Paul would hurt themselves as much as
the latter roads. The Alton which is most
seriously affected by the competition of the
Northwestern and Milwaukee & st. Paul.
and feeling very much annoyed on account
OF the violation of its contract with the
Northwestern by the latter, has decided TO
make the fight single handed against those
roads. 1t has perfected arrangements with
the Missouri Pacific for taking through
business via Kansas City to Omaha
and all points in Nebraska. and whatever
IdlcS lHG NOIlUWeSlGID anu MILWAUKEE, "
ST. Paul make 10 Kansas points will be met
by the Alton to Omaha and Nebraska
points. Before arriving at this conclusion
the Alton did everything in its power to
prevent a serious conflict. 1t demonstrated
with the Chicago & y Northwestern but that
road claimed that it was not responsible for
the cutting of rates to Southwestern and
Kansas points, and claimed 10 have been
compelled to do so by the Milwaukee Il ST.
Paul, which commenced to take business
via the Marysvile cutoff of the Union
Pacific Immediately upon the completion of
the latter. The action of the Chicago &
Alton in deciding to take through business
to Omaha and beyond is certain to break up
the Western Traffic assoc alton and lead to
serious war on Western rates. 1t is not
probable. however, that the war will con-
tinue beyond April l. 1887, when the inter-
state commerce law is expected to go into
effect. Tha; law it is expected will effectu-
ally stop undue competition by round
about iIicr nd. as roads can no longer
charge loser rates on long bauls than on
shorer ones the Northwestern and Mil
wauliee & st. Paul would find it unproft-
able 10 make the same rates or lower ones